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tv   Bloomberg West  Bloomberg  March 24, 2014 1:00pm-2:01pm EDT

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♪ >> live from pier 3 in san francisco, welcome to "bloomberg west." i am emily chang. technology and data analysis has helped malaysia determine that the missing malaysian airlines flight crashed into the southern indian ocean. we are taking a look at how tech help crack the case. larry page talks about everything from robots to self driving cars to search.
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here why he says he is obsessed with transportation later on this hour. a check of your top tech headlines, the completion of nokia's sale of its handset business to microsoft has been delayed until next month. it has been delayed so asian the 7.5rs can review billion dollar transaction. 15 companies have already approved the deal. the chinese government is demanding answers from the u.s. after reports that the nsa hacked into the servers of chinese networking giant huwawe. snowden showedward the nsa obtained information about how the network works. it also alleges the nsa monitor the communication from whole all huaweiom hallway -- from executives. beijing-based vircurex has
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frozen all user accounts and last month the larger exchange file for bankruptcy. new analysis of satellite data indicating that malaysian airlines flight 370 went down in a remote part of the southern indian ocean. data calculations were conducted by the british satellite company to reach this conclusion. still no confirmed debris. australia located the two objects and the search is on. they have been unable to locate those objects again. aviation consultant and former american airlines executive joins me from skype from fort washington, new york. robert, some potential relief for the people who have been involved in this for 17 days that there is some sort of answer. it's still a lot of questions.
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first of all, walk us through the process of how they were able to determine that this plane it definitively went down into the southern indian ocean. what technology went into the conclusion? it was the use of a rolls-royce engine monitoring system, which uplinks information to a ground station. that information was actually used indirectly along with some trigonometry to infer where in a couple of arcs on the earth's surface the aircraft could've been when communicating with the earth station. >> why couldn't they have done this a couple of days in? >> we shouldn't have to use indirect means to infer the location of an aircraft. there are direct means by which
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to do that and unfortunately the industry by and large does not utilize them. >> you have some ideas about what technology would be better. tell us about that. example, the system that was used to perform engine monitoring on that particular aircraft could have just as well been used to provide direct reads of gps position, altitude, heading in, and speed. -- heading, and speed. that's the sort of facility that could be provided industrywide for blue water price -- bluewater flights, flying over deepwater. >> with all of the data out there, along with 25 countries helping in this investigation at they get toy didn't this faster? >> the direct indication of the aircraft's position is the primary issue. we have been dealing with 17
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days -- dealing for 17 days to thermine the point where handoff from kuala lumpur airspace to vietnamese airspace this aircraft has been and where it went and ultimately where it may have ended up. have taken 16 or 17 days and in fact would not have taken that amount of time had the aircraft or any such aircraft had been broadcasting its position correctly and frequently to its home base. >> you designed the way flights -- you said the way flights are monitored are like two tin cans connected by a string. explain what you mean by that and it should be different. >> looks typical means -- the typical means of monitoring aircraft in a deepwater situation is high-frequency radio. we are using old technology that is highly prone to interference.
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as opposed to something that could be done once per minute, inexpensively, directly via sattelite. that makes the difference in a situation like this when you are trying to track the progress of apelike. >> -- of a flight. why is this technology so much more elusive? >> it's not. it is the exact same technology you would use to provide downton abbey and charlie's angels reruns in flight. you are providing a channel via satellite to a ground station. instead of running entertainment or e-mail or twitter posts you are running important aircraft operational date, including it's s position. it goes at the noise level of
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cost. the problem is it is always faster and better and cheaper two years from now than it is today. emergeda situation that after the air france jet went into the atlantic, when the industry tried to focus on streaming the so-called black box or flight data recorder back to home base in real time and it kind of went down a blind alley on that. that is technically infeasible, probably even today, four years later. technology was implemented, is this something each individual airline would have to agree to and put on each individual plane? as we know malaysian airlines opted out of certain technology that could have helped flying this plane sooner -- helped find this plane sooner. the third party, the commercial suppliers, come to the markets with product. that product is available today
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and many corporate jets fly with it today because they are corporatists -- because their corporate security departments demanded. very few international airlines fly with this sort of equipment today because it is typically andnsive on the one hand secondarily it provides greater functionality that is not necessarily required. industry -- first, standard to be evolved and solve theneed to market problem. >> think you so much for joining us. the search for debris, any sign of debris, is continuing right now. for a fast lane for it's new streaming tv.v. service. we will tell you how comcast could send apple tv zooming to your living room area the -- living room. ♪
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bloomberge back to " west." worries about apple's music ambitions send the shares of pandora lower today. shares dived after a recent billboard says apple could soon introduce itunes for google's android operating system. the report says apple is also looking at a standalone itunes radioactive for its next mobile os to challenge companies -- radio app for its next mobile... to challenge companies. app to challenge companies. according to a wall street journal report -- how would this work? apple tv has equal access to consumers along with other companies. with this deal comcast could build apple a fast lane right into your living room. me with moreoins
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on the details. in l.a. on thes west coast. how would this work between the hardware, the software, and the agreements that need to get done? >> i think apple would provide the setup box and could also provide some of the cloud services. comcast would offer the pipes. theink essentially what article was alluding to was that apple would like to be looked upon as managed services. apple tv would be considered a managed service, just like telephone lines, just like on demand video, and would not get caught up on all the buffering on the internet. isexplain what apple actually asking for here and why would comcast get apple what it wants? of having faster service, i think they want the same thing that netflix has
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because a lot of people are using itunes to watch movies. you don't want that experience interrupted. as to whether or not they would be allowed to move into the world that is comcast with a box, that is an important question. comcast already has a next-generation box. they don't talk a lot about it because the cable companies are not as fun to talk about is apple. it would essentially do the same thing. the reason comcast might be willing to do that is if they felt because apple has a certain kind of customer and certain people would want to use an apple product, maybe that would add some comcast customers. but they are only going to go ahead with something like this if comcast still controls the whole experience, the cable, the broadband, the works. >> as we understand it apple wants to control that experience. it wants to use apple ids and hearing --hat we are they are still talking -- and such. we are hearing -- they are still
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talking -- what will we need to get to some sort of agreement and how likely is it that it will happen? controlst on it, who the customer? the second would be the revenue share at is involved. i think both parties can win .ere apple would give access two 6 million itunes customers. comcast is 30 million when you included time warner. industry, aat cable lot of people are cutting the d or just not signing up for cable. one way to get around that with comcast is to work with someone like apple. >> there is some residents to cut a deal like this. i think they cut something similar to tivo. there are still major differences. explain that to us as well as how this would differ from the
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relationship that xbox or rope to has with comcast -- or roku has with comcast. >> any of the cable players want to make sure you can access their content on a bunch of different platforms. that is the bottom line. comcast wants to make sure that you are somebody who wants to or any otherevice device as a primary access to television and you can still be a comcast subscriber. if there was an apple box you can buy and maybe even use and market -- in a market where comcast is not serve subscribers, they be this would be a good way to build their footprint out of the market they have already got. if you are leaning on the arrangements that comcast already has with all of the broadcasters, that part of it is handled, then you can build this out maybe as an app with someone else's hardware.
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that is kind of the thinking. cantorn white of fitzgerald and jon erlichman. we are going to continue to follow this story. it is not the apple tv unicorn some people thought we were seeing but it is a step in that direction. coming up, how does larry page keep google innovative? we will hear from him in a rare interview next. the more i learn about technology the more i realize i don't know for you -- i don't know. see -- theou can more you learn about technology the more you learn is possible. ♪
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>> let him back to "bloomberg west." from search to robots and self driving cars, google has covered a lot of ground since it started 16 years ago. charlie rose set down with larry page at the ted conference in vancouver and sat down -- and started by asking where google is today. >> our mission is to organize information and make it universally accessible and useful. , is that whatsay you guys are really still doing? actually when i think about deep thingis such a for all of us, to understand what you want, to understand the world's information. and we are still in the early which is crazy. i have been added for 15 years but it is not at all done.
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>> when it is done, how will it be? >> i guess thinking about where we are going, why is it not done? one is computing is a mess. your computer doesn't know where you are, what you are doing, it doesn't know what you know. what we try to do recently is just make your devices work, make them understand your context. google now knows where you are and what you might need. to workting all of that on the one billion android -- we are starting to work on televisions, which is android for wearables. having the market understand you and understand that information -- >> where we are going is
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artificial intelligence. where are we when we look at that? is one of the most exciting things i have seen for a long time. i think we are seeing a lot of going on that cross-ice computer science and neuroscience in terms of really understanding what it takes to make something smart. subject is security and privacy, you have to have been thinking about that. >> i saw the picture of survey with edward snowden yesterday. ergei with edward snowden yesterday. you can't have privacy without security. for me to talk about security
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first and then i will say little bit about privacy. it is tremendously disappointed the government secretly did the stuff and did not tell us. i don't think we have a democracy if we are unwilling to protect you or your users from the government. i don't mean we have to know what the public -- with the particular terrorist attacks are and what they're protecting us from. -- what the particular terrorist attacks are and what they are protecting us from. i think we haven't had a conversation. has donehe government itself a tremendous disservice by doing all that. >> them there is the privacy side. >> the privacy side -- the world is changing. you're carrying a phone that
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knows where you are. there are so much more information about you. that is an important thing and it makes sense why people are asking the difficult questions. we spent a lot of time digging about this and what the issues are. is main thing we need to do just provide people choice, show them what data is being collected. search history, location data, we are excited about incognito mode in chrome. it gives people more choice and more awareness of what is going on. >> give me a sense of the philosophy of your own mind. you don't simply want to go in some psalm all -- some small measurable arena of progress. >> the more i learn about technology, the more i realize i don't know. , theechnological horizon thing you can see to do next,
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the more you learn about technology the more you learn what is possible. >> google ceo and cofounder larry page with charlie rose. turkey's government is locking quicker that is blocking twitter. is that -- government is blocking a twitter. ?s that backfiring ye minutes past the hour. i am olivia sterns, let's get you caught up on where the markets are trading. stocks are selling off for a second day. a disappointing report on manufacturing suggest the american economy is heading. the judge has signed off on the company settlement over claims that bernie made off --
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the skincare company is over half $1 million from china. more on bloomberg after the break.
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chang.emily the turkish government has blocked twitter access across the country and the prime minister defended his actions over the weekend. he also threatened to block facebook and youtube as his administration fights corruption charges. twitter remains committed to defending the privacy of our users in turkey. we won't portray their trust. the ceo of the intelligence firm or an asus. andrew, i will start with you,
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described the situation on the ground for us. areow some people successfully circumventing the difficulties that the government has put in place. what is the latest? >> twitter was blocked in the evening here. they moved to a different type of blocking over the weekend which is more difficult for people to get around. lots of people are still tweeting from turkey. is really a polarizing one just like so many other issues in turkey. the prime minister is still an,king about the twitter b threatening to ban even youtube and facebook. lots of people in turkey are completely outraged that this attack on freedom -- at this attack of freedom on expression. -- attack on freedom of
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expression. >> you're putting out real-time maps of the outage. what is the state of affairs in terms of how far this outage reaches? of affairs is basically unchanged over what we have seen. the blockage is at the ip level. -- the serviceh providers we have access to. >> what you mean by the ip level? i understand it was blocked on thursday and friday but it was still easier to access ban on saturday. -- still easier to access. then on saturday something different happened. >> we make measure networking tools for the internet. we have measurement coins in the city. see a lot ofend we the same things the consumers on the ground would have seen in
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initially it was a block of the name letter.com. that name resolved when addressed. it was a government machine. figurede on the ground out how to work this by reconfiguring their devices to google'sc dns, like public dns, something clearly had to happen. to 36 hoursabout 24 later additional blocks were put into place so that even the ip addresses belonging to twitter, the numbers that are used to identify their service in california became unreachable. >> what are people doing now? are they just using vpn c echo twitter is more popular -- vpns? twitter is more popular than it was day before. >> there were about 10 million users and the twitter traffic is actually increasing after the
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band. -- after the ban. people are using proxy servers to get around the ban and lots of people are able to do that. certainly that's how i managed to use twitter. i think it is fair to say there are a lot of people who are maybe not able to do that and they have been shut down. certain countries are more vulnerable to certain outages. where does turkey fall on that list? >> turkey is an intermediate case for us. on one hand you have a country that has one or two service network providers in the country who have international connections to the outside world. outages are not completely unacceptably of turkey ranks -- completely unaccepted. it is a very sophisticated group. there are more than one or two
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or three in turkey. the number of companies in turkey that are able to make direct international connections with the outside world is higher. a certain amount of resilience to a complete network shut down erie it -- shut down. the government's intervention in the internet has to be more surgical, more targeted at specific services, specific ip addresses and specific domain names. >> i know you map these kinds of things when it happens around the world, is it comparable to anything you have seen previously? >> if anything it is consistent with the sequence we have seen. in 2011 we saw egypt take the entire country off the internet with one tool. since then things have become much more surgical. it is very much like what we have seen in iran for their elections, blocking specific domain names or ip regions.
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in venezuela twitter also have some problems becoming recent -- becoming reachable. the same thing happens in a very sophisticated way to china on a daily basis. >> andrew, what impact has this blockage had on the political situation? i heard the turkish presence in that turkish -- turkish tosident took to twitter criticize the actions of the government. it is obviously very politically significant for this to happen. there were alleged tapped telephone conversations released where the prime minister is alleged to be speaking about things which substantiate corruption allegations against him. it also shows his interference in the media and other private business sectors.
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really what has happened up to now is questionable, whether there has been any advantage for him and his government and his party. the whole world has started to talk about these corruption allegations, the cap telephone conversations, and now this outrageous attack on freedom of expression. this is really just the start. arkey has recently passed newly restrictive internet law. be very unclear how the government seeks to use these powers they have. what we have seen in the twitter ban is that although there are orders for the four individual twitter accounts to be taken down, there was no court order for twitter itself to be shut down. the prime minister has said that he personally took this decision . it is indicative of how policy
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is made in turkey and how rights are violated. is going to have long-term implications. therea battle for whether is internet freedom, whether people can access this information, whether social media can continue to be a place where critics of the government can really share their ideas and receive information in a full -- in a forum.um i think this is going to go on and on. the start of really long-term situations in turkey. are you seeing other sites being blocked? there are reports of youtube being next. what about facebook quickly? >> not at the moment but we are going to keep an eye on it. it would be no surprise. thank you both.
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what is the value of design in technology and why our tech titans in silicon valley investing greatly? we will talk with apple's first design chief next. ♪
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>> the way a product looks and feels it is now as important as its function. great design leads to great user experience and he is the founder of the design studio ammunition group and the former head of industrials design at apple. you joined apple in 89. you left and 97. how has your design philosophy evolved? >> in many ways it hasn't changed.
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it has always been around designing and creeping things that are simple and accessible but at the same time aspirational. that is part of what we do at apple when apple continues. it is a core of the way i like to work. design is very emotional. i like to dive in and see what my reaction is right away. you put those aside and you go through research and come back to them. interesting enough a lot of times i am right. it is just that gut reaction of how a product should be or how it should look or work or behave. >> you're also the creative at -- a product that feels like it could be apples as well. how did you approach that design problem? working i started
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working -- started looking at headphones. they were all designed very functionally, very articulated and mechanical. the goal for me was to streamline all of that and make something really beautiful that looked good on the body, look good on your head or neck. interesting enough no one really had done that. as much as they are high-performance audio equipment, they have become beautiful fashion that people love and aspire to wear. >> you're taking a deeper look at wearables now. none of them are something i want to wear every day simply because of how it looks. >> we are awash in embedding technology. from a design point of view it is fantastic. people are rushing to connect your appliances or wearable technology without thinking it through.
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also what does it say about me? is the fashion of the tribe you want to belong to? when you where things it says something about you. most consumer electronic companies don't understand that emotional aspect of putting something on somebody's body. secret? >> one of the secret is moving -- connecting to those emotional aspirations. one way we have been asked -- we have been suspects full -- we have been suspectccessful --those are the keys things -- those are the things you want to key upon. a health monitor, if i have to invest a lot in it i am not going to wear it as much. >> i have to ask about apple. i know you hired johnny ives and left in 1997. a lot of questions about what is apple working on.
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people have doubts they're working on anything revolutionary. what do you think? >> i am not close to apple anymore. i have no doubt apple will continue to innovate and push forward. there's this type of organization group and talent there that they will continue to push. the discussion of whether they lost it, i don't think there is anything. >> even coming up with more category defining products. watch or td? >> they will continue to look at the assets they have in finding those on people's bodies. interesting -- i always say technology tables what design establishes. it is one reason apple so good. they understand that. >> thank you. great to hear your design for some -- design philosophy and how you approach these hard problems. afe media started out as
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small punk magazine. now it is close to being a million-dollar 80 a business. that is next. -- million-dollar media business. that is next.
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>> disney has named ben sherwood as the new cochairman of disney media networks and president of the disney abc 7 -- abc television group. he will stay on to abc news until a replacement is found. he will oversee the largest division, including abc, abc family, and the disney channel. punk culturembines with journalism and the strategy is giving traditional media players a run for their money. it is also helping them grow to a multibillion dollar valuation. we caught up with the cofounder and head of vice media. >> we are talking about shane
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smith, a really colorful character. all is the platform through different ways people reach people. their latest venture is vice news. areked how much money they putting into this new part of the vice empire. >> i will spend about $50 million over the next couple of years. we are still in beta. we have only been out for two weeks. it has already been a tremendous success with our coverage of crimea, our coverage of riots in venezuela. only is it driving a lot of traffic for us but it is also giving googles -- giving kudos to the mainstream media who do nothing but make fun of us. >> are you interested in having your own cable network to be there for people to discover you in that way? >> i would have said no up until recently. we have been selling so much around the world.
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were doing so many parties in london, so many events that we bought a pub. we put all of our events in that pub and the pub became the most wildly successful venture. we are selling so much tv and cleaning so much ip that it is always smart to own your own platform if you can. for us we are looking at various opportunities because we have such a decertification going on in media. at buying distressed media assets and see if we can't turn it around. >> you are a profitable company. what does that mean? does that mean you are a wildly profitable company? >> i think for all we do we are wildly profitable. we have been profitable since day one because we came up in a recession and we believe you have to make a profit. we have been doubling our top line pretty much every year that we have been in existence.
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our margins have gone up. as we are licensing to mobile areonline tv, our margins actually going up. we are running around a 40% margin. we are going to try to get to 44% next year. 50% for an online company would be huge for us. >> what you think your company is worth? >> a lot. we got pegged at a billion and a half and we have doubled since then. a tremendous scale growth that has gone along with it since then. we hit our numbers ash if we hit our numbers this year and projected next year, -- if we hit our numbers this year and project to next year our numbers would be exponential. if we are doing a billion dollars of top line at 50% or close to a margin with an ever creasing -- ever-increasing
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scale it would be worth as much as twitter. we are a great company but not making any profit. a you're close to generating billion dollars in revenue? clock stuffs the plan. within the next 12 to 18 months. wax that's the plan. within the next 12 to 18 months. >> it was said to you and rupert murdoch celebrated by having a beer in brooklyn. was that -- >> no. what happened was we were discussing some form of deal and we were at his offices. talked for ad we bit. i said he should come see the shop. and we out to brooklyn went to my favorite bar and had a drink. us andlot of people saw he tweeted and that started a whole rumor. unrelated to that the deal took
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a life of its own and later on we ended up doing this deal around five percent ownership. >> a lot of people worry about -- people wonder about the corporate and game. do you want to sell this business? i assume you don't based on what you have said in the past. would you consider going public? is that something that would interest you? >> i think we have to look at everything now. it is a great question. one of the reasons we did the to stay independent. business way we want it to run. i own 95% of the board. it was a great deal for us. it is helping us expand into the world. we are expanding into india, to europe, south america. that being said i think you have to look at things -- if we hit the numbers that we believe we are going to hit we are throwing
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off so much money that our scale is increasing rapidly, we would be stupid not to test with the market would bear. there's a lot of money sloshing around the system. valuations are high. god knows when the next recession are coming. if we didn't take money off the table -- >> that was shane smith. >> thank you. for the fight one number. that tells us a whole lot. sincehas been six years sheryl sandberg was at her old job at google. there has been that case whether technologies made agreements not to approach each other's talent. some players like into it, there were deals in place not to take other talent created facebook did not have that kind of deal. >> this coming from a deposition that sheryl sandberg gave.
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thank you all for watching this edition of "bloomberg west." we will see you later. ♪
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>> this is bottom line, the intersection of business with the mainstream perspective. malaysia says flight 370 crashed in the southern indian ocean. president obama meets with g-7 leaders on the ukraine crisis. ukraine on the ukraine crisis. landing a major league team for spring training. our top story, investigators have now concluded that

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